Japan and the U.S. have agreed to intensify communication on exchange rates, according to Japanese Finance Minister Satsuki Katayama. The announcement followed her meeting with U.S. Treasury Secretary Scott Bessent in Washington on Wednesday.
Policymakers in Japan have voiced concerns over the yen's recent depreciation, which increases import costs and exacerbates inflationary pressures. A weaker yen also magnifies the impact of rising oil prices, a critical issue for Japan due to its heavy reliance on energy imports.
The yen is currently trading near the 160-per-dollar mark, a level previously associated with government intervention to support the currency. Katayama and Bessent last met in January, with discussions at that time contributing to a temporary strengthening of the yen.